Alpine has dramatically exceeded even our most optimistic forecasts and has operated flawlessly. The management team realized its long-term expectations for equity appreciation in only seven months. Furthermore, the team is very excited about the opportunity to work under the ITW umbrella.
White Plains, NY (PRWEB) February 9, 2006
Stonebridge Partners (“Stonebridge” or the “Firm”) is pleased to announce the sale of its portfolio company, Alpine Engineered Products, Inc. (“Alpine” or the “Company”) to Illinois Tool Works Inc. (“ITW”). Alpine was acquired in July 2005 for $159 million. In the seven months under Stonebridge’s ownership, Alpine’s earnings increased by 45%.
Stonebridge Partners (http://www.stonebridgepartners.com) is a premier private equity firm celebrating its 20th year of acquiring middle market companies in conjunction with existing management teams. Stonebridge has completed 22 core company acquisitions and 23 add-on acquisitions, investing over $500 million of capital in these transactions. Stonebridge primarily focuses on value-added manufacturing companies, partnering with talented management teams and providing capital and operating expertise to enhance growth in sales and profitability. The Firm’s realized internal rate of return (“IRR”) on 16 transactions since 1989 has approximated 50%.
Alpine was acquired by Stonebridge on a direct, negotiated basis from a South African public company. The Firm’s longstanding financial partner, Weston Presidio, was brought into the transaction by Stonebridge and became a significant co-investor in the transaction. After a strong overture from a strategic buyer shortly after Alpine was acquired, Stonebridge elected to explore its strategic alternatives. The Company engaged Harris Williams & Co. to act as its exclusive advisor.
Alpine represents the latest of a string of very successful recent exits for Stonebridge that includes the sale of Hunter Fan Company to Lehman Brothers, which resulted in a 65% IRR, and the sale of Delta Plastics, Inc. to Rexam PLC, which generated a 56% IRR. Including Alpine, these three recent exits have provided the firm’s limited partners with a blended IRR of 98%. All three transactions were acquired on a direct negotiated basis through the Firm’s proprietary broker network.
“This has been an outstanding transaction for Stonebridge,” said Michael S. Bruno, Jr., Managing Partner of Stonebridge. “Alpine has dramatically exceeded even our most optimistic forecasts and has operated flawlessly. The management team realized its long-term expectations for equity appreciation in only seven months. Furthermore, the team is very excited about the opportunity to work under the ITW umbrella.”
Alpine Engineered Products (http://www.alpeng.com) is a leading manufacturer and supplier of products and services to the pre-manufactured, residential and commercial truss industry in the United States, with revenues of over $200 million in 2005. The Company's integrated product offering provides its customers with a total building solution for designing and manufacturing roof and floor truss components and wall panels. Alpine's product and service offerings include its proprietary truss design software, engineering and design support services, truss manufacturing equipment, and metal connectors used in the construction of wood truss components. Alpine’s headquarters is in Pompano, Florida, with five manufacturing sites in Illinois, California, Texas and the United Kingdom.
ITW, headquartered in Glenview, Illinois, is a diversified manufacturer of highly engineered components and industrial systems with $12.9 billion in revenues. ITW consists of approximately 700 decentralized operations in 48 countries and employs almost 50,000 people. For more information, visit http://www.itw.com.
For more information regarding this transaction, please contact Michael S. Bruno, Jr. of Stonebridge Partners at (914) 682-2700.
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